Comparing Open-Loop with Markov Equilibria in a Class of Differential Games

We consider a class of differential games with transition equations that are homogeneous of degree one. For any game G with a discount rate r, consider a Markov perfect equilibrium (MPE) with strategies that are linear in the state variables. We show that the time paths of the control variables of this equilibrium constitute an open-loop equilibrium of a corresponding game Classification-JEL: C72; C73; Q30

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Year of publication:	1997-04-01
Authors:	Long, Ngo Van ; Shimomura, Koji ; Takahashi, Harutaka
Institutions:	Centre Interuniversitaire de Recherche en Analyse des Organisations (CIRANO)
Subject:	Differential games \| Markov perfect equilibria \| open-loop equilibria \| Jeux différentiels \| équilibre Markov-parfait \| équilibre en boucle ouverte

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Series:	CIRANO Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	20 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005100772